The Ministry of Economy and Industry today (Tuesday) published the Banking Friendly Index for Small and Medium-Sized Businesses for 2021, which shows that the first places continue to be occupied by Mercantile and Mizrahi banks and are the most friendly for small and medium-sized businesses in Israel in the past year.
In the past year, the credit rate for small businesses has decreased by a total of 1.8 percentage points of total business credit. There is a decrease of all banks, except Mizrahi, in the volume of interest income in relation to credit compared to last year, due to the effects of the fund with a state guarantee.
A decrease in credit risk can be seen as a result, among other things, of the increase in business activity in the economy after the corona crisis. An increase in the price of credit in relation to risk and a consistent decrease in the operating burden for three consecutive years.
The Bankers’ Index for Small and Medium-Sized Businesses, published since May 2018 by the Agency for Small and Medium-Sized Businesses in the Ministry of Economy and Industry, is intended to encourage awareness and competitiveness in the field of credit for small and medium-sized businesses.
The index is based on the financial data published by the banks, a business satisfaction survey and a feedback survey conducted by the agency among financial advisors who help businesses receive various services from the banks. The index refers to businesses with a turnover of up to NIS 50 million.
The parameters that make up the index are: the volume of credit of the Bank for small and medium-sized businesses in total business credit, the interest-to-credit ratio of credit that small and medium-sized businesses receive from the Bank, the Bank’s profitability rate from non-interest income (various fees), business satisfaction survey and financial advisers feedback On the banks.
Minister of Economy and Industry Orna Barbibai said: “At a time when the economy is growing again, banks, as major sources of financing for small and medium-sized businesses, play a crucial role in providing quality and fair credit for business start-ups, current needs and those who still need credit for survival. For businesses and an incentive for banks to improve in providing the service and attitude to small and medium-sized businesses. ”